by Jennifer Loeb, Austin Evers, Grace Bruce, and Younger Park
From left to proper: Jennifer Loeb, Austin Evers, Grace Bruce, and Younger Park (images courtesy of Freshfields Bruckhaus Deringer LLP)
Combatting “unlawful” Variety, Fairness and Inclusion (DEI) stays a “Day One” precedence in Washington. President Trump issued government orders on DEI on his first day in workplace. Lawyer Normal Bondi likewise issued her personal memos on her first day on the Division of Justice. And now, the brand new head of the Division of Justice’s Civil Division has adopted go well with and issued his personal memo on his first day, marking DEI-related matters as two of the Division’s high 5 priorities. That is one more indicator that the administration seems to be shifting into the enforcement section of its DEI reset. Well being care and life sciences corporations have explicit cause to take observe.
On June 11, 2025, the newly confirmed head of the Division of Justice’s Civil Division, Assistant Lawyer Normal (AAG) Brett Shumate, issued a memo on the Civil Division’s enforcement priorities (June 11 Memo). The memo recognized 5 precedence areas, with DEI topping the record. The memo flags that the Civil Division plans to make use of “all obtainable sources” to fight unlawful DEI practices, particularly by bringing fits beneath the False Claims Act (FCA) and “aggressively investigat[ing]” recipients of federal funds.
Different priorities on the record embrace enforcement towards recipients of federal funds that take part in or permit antisemitism; investigations into pharmaceutical corporations and hospitals offering gender transition providers; ending sanctuary jurisdictions; and instituting civil denaturalization proceedings towards those that “illegally procured” citizenship.
Precedence #1 – “Combatting Discriminatory Practices and Insurance policies”
The June 11 Memo asserts that the Civil Division’s high precedence might be supporting the Trump administration’s battle towards “unlawful DEI.” Past its place on the high of the record, the Civil Division’s prioritization of combatting discrimination stands out as a result of, beneath Division rules, the Civil Rights Division historically is liable for implementing civil rights legal guidelines. 28 C.F.R. 0.50(a). This can be a additional sign that the administration intends an progressive strategy, utilizing different statutes, just like the FCA, as we wrote about right here, to pursue DEI targets.
This mission was first articulated in President Trump’s Govt Order 14173 (EO), which directed each federal company to establish methods to “deter” DEI within the non-public sector and referred to as for utilizing the FCA towards contractors and grantees who pledge to comply with U.S. antidiscrimination legal guidelines however preserve illegal DEI practices. Lawyer Normal Pam Bondi later reiterated this sentiment in a February 5, 2025 memo and directed the DOJ to align its “litigating positions with [the] requirement of equal dignity and respect.”
Within the June 11 Memo, AAG Shumate emphasised the Civil Division’s dedication to those ideas by directing the Division to file go well with beneath the FCA towards entities engaged in “unlawful DEI” practices. These efforts will assist advance DOJ’s new Civil Rights Fraud Initiative, which goals to “make the most of the False Claims Act to research and, as applicable, pursue claims towards any recipient of federal funds that knowingly violates federal civil rights legal guidelines.” The June 11 Memo instructs the Civil Division to completely cooperate with the Civil Rights Division, relators, different whistleblowers, and federal companies to pursue these claims. Firms also needs to be aware of the Lawyer Normal’s February memorandum that directed the Division to contemplate felony fees associated to DEI.
Precedence #3 – “Defending Ladies and Kids”
According to combating unlawful DEI, the memo additionally prioritizes the administration’s give attention to gender and gender id. Following the President’s government orders on gender, on April 22, 2025, Lawyer Normal Pam Bondi issued a memo (April 22 Memo), directing the Civil Division to research potential violations of the Meals, Drug, and Beauty Act (FDCA) by producers and distributors of medication associated to “gender transition.” The April 22 Memo additionally directed the Civil Division’s Fraud Part to research violations of the FCA by physicians and hospitals offering “impermissible providers” like puberty blockers and gender transition procedures whereas billing to Medicare and Medicaid beneath authentic functions.
The June 11 Memo contains these directives because the Civil Division’s third precedence and guarantees to additionally use “all obtainable sources” to prioritize the investigation of medical doctors, hospitals, pharmaceutical corporations, and different associated suppliers relating to potential violations of the FDCA or the FCA.
President Trump’s unique DEI-related government order directed the administration to develop plans to fight “unlawful DEI” in 120 days, or by mid-Could. With that deadline not too long ago handed, the Division of Justice seems to be signaling its plans to satisfy the President’s directive, launching cross-component groups and making DEI the Civil Division’s high precedence. In 2025, DEI shouldn’t be merely an employment legislation challenge. Whether or not corporations have already evaluated their DEI initiatives this yr or not, they need to take into account taking inventory now to gauge their potential publicity to FCA whistleblower, FDCA, or different claims.
The views, opinions and positions expressed inside all posts are these of the writer(s) alone and don’t symbolize these of the Program on Company Compliance and Enforcement (PCCE) or of the New York College Faculty of Regulation. PCCE makes no representations as to the accuracy, completeness and validity or any statements made on this web site and won’t be liable any errors, omissions or representations. The copyright of this content material belongs to the writer(s) and any legal responsibility as regards to infringement of mental property rights stays with the writer(s).
by Jennifer Loeb, Austin Evers, Grace Bruce, and Younger Park
From left to proper: Jennifer Loeb, Austin Evers, Grace Bruce, and Younger Park (images courtesy of Freshfields Bruckhaus Deringer LLP)
Combatting “unlawful” Variety, Fairness and Inclusion (DEI) stays a “Day One” precedence in Washington. President Trump issued government orders on DEI on his first day in workplace. Lawyer Normal Bondi likewise issued her personal memos on her first day on the Division of Justice. And now, the brand new head of the Division of Justice’s Civil Division has adopted go well with and issued his personal memo on his first day, marking DEI-related matters as two of the Division’s high 5 priorities. That is one more indicator that the administration seems to be shifting into the enforcement section of its DEI reset. Well being care and life sciences corporations have explicit cause to take observe.
On June 11, 2025, the newly confirmed head of the Division of Justice’s Civil Division, Assistant Lawyer Normal (AAG) Brett Shumate, issued a memo on the Civil Division’s enforcement priorities (June 11 Memo). The memo recognized 5 precedence areas, with DEI topping the record. The memo flags that the Civil Division plans to make use of “all obtainable sources” to fight unlawful DEI practices, particularly by bringing fits beneath the False Claims Act (FCA) and “aggressively investigat[ing]” recipients of federal funds.
Different priorities on the record embrace enforcement towards recipients of federal funds that take part in or permit antisemitism; investigations into pharmaceutical corporations and hospitals offering gender transition providers; ending sanctuary jurisdictions; and instituting civil denaturalization proceedings towards those that “illegally procured” citizenship.
Precedence #1 – “Combatting Discriminatory Practices and Insurance policies”
The June 11 Memo asserts that the Civil Division’s high precedence might be supporting the Trump administration’s battle towards “unlawful DEI.” Past its place on the high of the record, the Civil Division’s prioritization of combatting discrimination stands out as a result of, beneath Division rules, the Civil Rights Division historically is liable for implementing civil rights legal guidelines. 28 C.F.R. 0.50(a). This can be a additional sign that the administration intends an progressive strategy, utilizing different statutes, just like the FCA, as we wrote about right here, to pursue DEI targets.
This mission was first articulated in President Trump’s Govt Order 14173 (EO), which directed each federal company to establish methods to “deter” DEI within the non-public sector and referred to as for utilizing the FCA towards contractors and grantees who pledge to comply with U.S. antidiscrimination legal guidelines however preserve illegal DEI practices. Lawyer Normal Pam Bondi later reiterated this sentiment in a February 5, 2025 memo and directed the DOJ to align its “litigating positions with [the] requirement of equal dignity and respect.”
Within the June 11 Memo, AAG Shumate emphasised the Civil Division’s dedication to those ideas by directing the Division to file go well with beneath the FCA towards entities engaged in “unlawful DEI” practices. These efforts will assist advance DOJ’s new Civil Rights Fraud Initiative, which goals to “make the most of the False Claims Act to research and, as applicable, pursue claims towards any recipient of federal funds that knowingly violates federal civil rights legal guidelines.” The June 11 Memo instructs the Civil Division to completely cooperate with the Civil Rights Division, relators, different whistleblowers, and federal companies to pursue these claims. Firms also needs to be aware of the Lawyer Normal’s February memorandum that directed the Division to contemplate felony fees associated to DEI.
Precedence #3 – “Defending Ladies and Kids”
According to combating unlawful DEI, the memo additionally prioritizes the administration’s give attention to gender and gender id. Following the President’s government orders on gender, on April 22, 2025, Lawyer Normal Pam Bondi issued a memo (April 22 Memo), directing the Civil Division to research potential violations of the Meals, Drug, and Beauty Act (FDCA) by producers and distributors of medication associated to “gender transition.” The April 22 Memo additionally directed the Civil Division’s Fraud Part to research violations of the FCA by physicians and hospitals offering “impermissible providers” like puberty blockers and gender transition procedures whereas billing to Medicare and Medicaid beneath authentic functions.
The June 11 Memo contains these directives because the Civil Division’s third precedence and guarantees to additionally use “all obtainable sources” to prioritize the investigation of medical doctors, hospitals, pharmaceutical corporations, and different associated suppliers relating to potential violations of the FDCA or the FCA.
President Trump’s unique DEI-related government order directed the administration to develop plans to fight “unlawful DEI” in 120 days, or by mid-Could. With that deadline not too long ago handed, the Division of Justice seems to be signaling its plans to satisfy the President’s directive, launching cross-component groups and making DEI the Civil Division’s high precedence. In 2025, DEI shouldn’t be merely an employment legislation challenge. Whether or not corporations have already evaluated their DEI initiatives this yr or not, they need to take into account taking inventory now to gauge their potential publicity to FCA whistleblower, FDCA, or different claims.
The views, opinions and positions expressed inside all posts are these of the writer(s) alone and don’t symbolize these of the Program on Company Compliance and Enforcement (PCCE) or of the New York College Faculty of Regulation. PCCE makes no representations as to the accuracy, completeness and validity or any statements made on this web site and won’t be liable any errors, omissions or representations. The copyright of this content material belongs to the writer(s) and any legal responsibility as regards to infringement of mental property rights stays with the writer(s).
